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Malaysia is not speaking about the US dollar merely as a currency, but as a measure of power in a global economy where burdens and benefits are not shared equally. Prime Minister Anwar Ibrahim’s renewed call to reduce excessive dependence on the dollar is not a dramatic rejection of the existing financial system. It is a practical attempt by a developing economy to widen its room for manoeuvre in a world where financial shocks travel quickly, reaching commodity prices, borrowing costs and the survival prospects of small businesses.
Anwar made the remarks during the opening of Ant International’s Global Development Operations Centre in Kuala Lumpur’s Tun Razak Exchange. Ant International, a fintech company affiliated with Ant Group and linked through its wider Chinese technology ecosystem, operates in digital payments, financial technology and cross-border commerce solutions. In his speech, Anwar argued that the current global financial system does not serve all players equally, as it often benefits multinational corporations more than small and medium-sized enterprises. He also noted that Malaysia and China had increased the use of the ringgit and yuan in bilateral trade from 5 percent to 18 percent.
The significance of the statement lies not only in the figure, but in the political language surrounding it. Malaysia is not saying it can abandon the dollar, nor would such a step be realistic. Rather, Kuala Lumpur is arguing that overdependence on a single global currency leaves developing economies exposed to volatility they did not create. In this sense, Malaysia is opening a window, not demolishing the house. It wants a more plural financial system in which smaller and middle-income economies are not forced to breathe through one narrow monetary channel.
Seen from this angle, the use of local currencies is part of a wider Asian shift. China’s expanding trade role, the rise of digital payments and the growth of intra-Asian commerce are giving currencies such as the ringgit and yuan a more practical function. They are not simply symbols of sovereignty, but tools that can reduce transaction costs and currency risks. Yet such a path requires more than political endorsement. It needs banking trust, settlement mechanisms and regulatory transparency. A local currency becomes a source of strength only when traders, banks and small investors are willing to rely on it.
The deeper message in Anwar’s speech is his attempt to link financial reform with social justice. He was not addressing banks alone, but also small businesses, workers and young people who may see financial technology either as a door to opportunity or as a new form of digital dependence. For that reason, he stressed that technology and innovation should not become ends in themselves. They must create quality jobs, strengthen local capacity and expand affordable access to financial services.
Still, financial optimism must be accompanied by caution. Artificial intelligence, as Anwar suggested, can reshape trade, credit assessment and risk management. But it can also concentrate economic power in the hands of those who control data, platforms and digital infrastructure. This is why Malaysia’s effort to develop stronger governance around artificial intelligence, cybersecurity and data protection matters. The issue is not whether machines can make faster decisions, but whether human judgment remains at the centre of decisions that affect livelihoods and markets.
The debate, therefore, is not simply about the dollar versus local currencies. It is a test of Malaysia’s ability to build a more balanced domestic economy. Diversifying payment tools, digitising financial services and connecting small enterprises to cross-border markets can give Malaysia greater economic flexibility. But that flexibility will remain fragile unless it is protected by clear governance, serious data safeguards and a strategy that prevents dependence on one dominant currency from becoming dependence on one dominant technology platform.
In the end, Anwar’s message raises a question larger than the dollar itself: who has the right to design the financial order of the future? If the answer is left only to major corporations and powerful economies, old inequalities may simply return wearing a digital mask. But if Malaysia succeeds in turning financial technology into a genuine public benefit, it will not merely reduce its exposure to the dollar. It will expand the meaning of economic sovereignty in an age when the strength of a nation is measured not only by the currency it uses, but by the people it protects.
Abdullah Bugis (kualalumpur.abdullah@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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